Nordea has on 30 September received the final Capital Joint Decision. The expected Common Equity Tier 1 ratio requirement by 30 September is 17.3%. The Common Equity Tier 1 requirement of 17.3% includes 85 bp (equivalent to a Common Equity Tier 1 requirement of EUR ~1.2bn and a total Own funds requirement of EUR ~1.5bn) due to the PD inspection performed by the college of supervisors (FSAs) during 2016 as well as the corporate risk weight memo (FI Ref. 15-13020).
Nordea takes note of the SFSA combined assessment related to the PD inspection and the corporate risk weight memo (FI Ref. 15-13020) of 85 bp. After a thorough review, Nordea’s assessment differs from the SFSA’s strict conclusion.
By 30 June 2016, Nordea had a Common Equity Tier 1 ratio of 16.8% (pro forma 17.2% including synthetic securitisation) and expects to have made further significant progress towards meeting its capital and dividend policy targets at the time of the Q3 results announcement. Final decision on the dividend will be taken by the AGM in 2017.
– We have over the last decade generated EUR 31bn in capital and strengthened the CET1 ratio from 5.9% to 17.2%. We have done this with one of the most stable earnings streams in Europe. Our balance sheet is among the strongest of European banks, which is reflected through some of the highest credit ratings from all rating agencies. Adjusting to the new requirements will not affect our business, says Group CEO Casper von Koskull.
